jriemerm
Dryer sheet wannabe
Hi,
I am newly retired at 60, on a Minnesota state pension and also Social Security survivor benefits. At full retirement age (66 1/2) I plan on switching from survivor benefits to my own Social Security account, which will bump my income up by $1100/month, thereby pushing me into a higher tax bracket.
I have about $75K in a deferred compensation plan, so any money I take out will be fully taxable in the year I take it out. So, I'm thinking I should start withdrawing from that deferred comp plan now, while I am in a lower tax bracket before I starting collecting my own, higher social security benefits. Not withdrawing a lot--probably a few hundred a month, since I am getting by OK on just the pension and social security benefits.
Does this make sense? I'm really not worried about running out of savings, because I have more savings elsewhere, and my pension and social security is a decent income for my modest needs.
Thanks for your thoughts.
I am newly retired at 60, on a Minnesota state pension and also Social Security survivor benefits. At full retirement age (66 1/2) I plan on switching from survivor benefits to my own Social Security account, which will bump my income up by $1100/month, thereby pushing me into a higher tax bracket.
I have about $75K in a deferred compensation plan, so any money I take out will be fully taxable in the year I take it out. So, I'm thinking I should start withdrawing from that deferred comp plan now, while I am in a lower tax bracket before I starting collecting my own, higher social security benefits. Not withdrawing a lot--probably a few hundred a month, since I am getting by OK on just the pension and social security benefits.
Does this make sense? I'm really not worried about running out of savings, because I have more savings elsewhere, and my pension and social security is a decent income for my modest needs.
Thanks for your thoughts.
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